Okay, back again - I just had it happen again. All I did was open Poser 6 (it loaded the default factory scene with James Casual). Then I started editing something in NotePad++, and while I was doing that the old "Poser XML Error" dialog appeared - exactly the same, line 43.

I checked the 'LibraryPrefs.xml' file and there's nothing obviously wrong with it - no special characters.

Hmmm... I use NotePad++ a lot, and I think I've possibly been using it every time this Poser XML Error dialogue appears error... I wonder if perhaps there's some 'spooky action at a distance' going on there? (I wasn't editing any of the Poser XML files, or any file that Poser's currently using, when it happened just now - although I was editing a PoserPython script)

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The 3Dcheapskate* occasionally posts sensible stuff. Usually by accident.
And it usually uses Poser 11, with units set to inches. Except when it's using Poser 6 or PP2014, or when its units are set to PNU.

*also available in ShareCG, DAZ, and HiveWire3D flavours (the DeviantArt and CGBytes flavour have been discontinued).